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FDRC implements terms in relation to small enterprises under the Financial Dispute Resolution Scheme

(3 July 2018, Hong Kong) – The Financial Dispute Resolution Centre (FDRC) today announces the implementation of terms in relation to small enterprises under the Financial Dispute Resolution Scheme (Scheme).  The scope of eligible claimants under the enhanced Scheme, apart from individuals and sole proprietors, is widened to cover small enterprises.  Thus, the FDRC is able to assist small enterprises in resolving their monetary disputes with banks and securities firms by way of primarily “Mediation First, Arbitration Next”.

Under the Scheme, a small enterprise means a limited company or partnership which, in accordance with its or its group’s latest financial statement, is able to meet all of the following requirements:

• an annual turnover not exceeding HK$50 million;
• gross assets not exceeding HK$50 million; and
• not more than 50 employees in Hong Kong.

Major features of the Scheme are:

• the maximum claimable amount is HK$1 million
• the limitation period of a claim is 24-month from the date of purchase of financial instrument or the date of first knowledge of loss, whichever is the later; and
• if both parties agree, the FDRC may handle cases with a claim exceeding the maximum claimable amount and/or beyond the limitation period.

The FDRC independently and impartially administers the Scheme, which provides a cost-effective and time-saving financial dispute resolution avenue. For further information, please call the FDRC hotline at 3199 5199 or visit the FDRC website at www.fdrc.org.hk.

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For media enquiries, please contact Ms Ginny Kung at 3199 5109 or pr@fdrc.org.hk.

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